To ask the Secretary of State for the Environment, Transport and the Regions if his Department defines a publicly funded body with a contract under a compulsory competitive tendering project as being in the public sector; and if he will make a statement. [7586]

A local authority may undertake a defined activity if it has satisfied the six competition conditions set out in the legislation governing compulsory competitive tendering. A joint venture company or other local authority company may also undertake a defined activity and, if the company is controlled or influenced by the authority, as defined in Part V of the Local Government and Housing Act 1989, it is regarded as being in the public sector.